You may have heard of lawsuit loans on television, or even seen ads in the newspaper or online. What are these types of loans, and how do you know if you qualify? Also known as litigation financing or pre-settlement funding, this type of loan is simply a cash advance given to those who qualify against a pending lawsuit settlement. If you are a victim of negligence or misconduct that has resulted in injury, you may be eligible for an advance.
Suppose you have been injured and are waiting for a personal injury lawsuit to settle, or for payment from the insurance company. If it has been determined that your claim is valued at $90,000, you could be eligible for a $9,000 lawsuit loan, or roughly 10% of your claim’s value. If your case is solid and not frivolous and the litigation financing company determines it to have a high chance of winning, you will likely qualify.
With lawsuit loans, you and your attorney will submit the necessary information to the funding company who will then review it promptly. This data applies only to the accident/incident that caused your injuries, whether it was a car accident caused by negligence, a defective product, medical malpractice, slip and fall, etc. The litigation financing company wants to make certain that negligence is clear, and your injuries serious enough to impact your life in a way that affects you ability to work and/or perform daily tasks. In other words, your case should not be one considered frivolous.
In the process of applying for lawsuit loans, the injured party is never questioned about employment status, credit standing or other personal information. Bad credit makes no difference; as long as the funding company believes you will win your settlement, you will likely qualify. The litigation financing company only gets repaid the money they advanced you if you do win, along with interest and fees. Should you not be given a settlement for any reason, you owe nothing. This is because the process is what is known as non-recourse.
Lawsuit loans make it possible for injury victims who are awaiting settlement to pay bills and attorney fees, buy groceries, basically live a normal life and keep the creditors at bay while waiting on their money. Pre-settlement funding is not the solution for everyone, but you won’t know if it is for you until you speak with your lawyer. Learn more online about the process, or discuss it with your attorney today.